Market Update
European Markets Traded Down Amid Deteriorating Credibility of Trump Administration
Bridgette Randall
12 Jun, 2025
London
European market sentiment worsened after the U.S. president ramped up threats to impose higher tariffs ahead of the fast-approaching deadline.
Benchmark indexes in Frankfurt, Paris, Milan, and London fell as much as 0.7% as Donald Trump threatened to impose unilateral tariffs on key trading partners, including the European Union.
Financial markets have grown accustomed to constantly changing U.S. trade policy, and investors accelerate selling of the U.S. dollar-denominated assets.
The European Union member nations are increasingly looking to reduce their holdings of the U.S. stocks, bonds, and dollar-linked securities amid the waning safe-haven status of the U.S.
The European Union and the U.S. are expected to wrap up their trade talks before July 9, but negotiators in Brussels are signaling slow progress and a lack of an agreement.
U.S. Treasury Secretary Scott Bessent suggested that the current pause in sky-high import tax proposed by the U.S. may be extended by another three months for countries demonstrating "good faith" negotiations.
On Wednesday, Trump claimed that a trade framework with China has been finalized, without specifying the level of tariffs and scope of export controls.
But Chinese negotiators voiced their skepticism in Beijing, signaling that the two sides are far apart from a deal.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 23,770.54, the CAC-40 index edged lower 0.5% to 7,736.72, and the FTSE 100 index declined 0.02% to 8,862.54.
The yield on 10-year German bonds inched lower to 2.50%, French bonds decreased to 3.20%, the UK gilts moved down to 4.52%, and Italian bonds edged lower to 3.44%.
The euro increased to $1.15; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 81.69 Swiss cents.
Brent crude decreased $0.74 to $69.03 a barrel, and the Dutch TTF natural gas was higher by €0.38 to €36.36 per MWh.
Europe Movers
Kering SA decreased 2.3% to €176.18, LVMH fell 0.4% to €468.75, and Hermes International SCA declined 1.3% to €2,320.0.
Volkswagen AG dropped 1.2% to €90.60, Mercedes-Benz Group fell 1.6% to €51.18, Porsche Automobil Holding SE decreased 1.2% to €34.15, and Renault SA declined 1.2% to €43.70.
Europe Movers: Tesco PLC
Inga Muller
12 Jun, 2025
Frankfurt
Tesco PLC gained 1.3% to 390.20 pence after the grocery and general merchandise retailer released its first-quarter trading statement.
Sales in the quarter increased to £16.38 billion from £15.30 billion a year ago, as same-store sales climbed 4.6%.
Comparable sales at UK locations increased 5.1% to £12.3 billion, and at Booker wholesale rose 2.0% to £2.3 billion, and in Central Europe advanced 4.1% to £997 million.
Food sales up increased5.9% from a year ago, with a strong contribution from fresh food; non-food sales excluding toys surged 6.2%, with strong growth in home and apparel, benefiting from new and extended ranges as well as warmer weather conditions.
Tesco registered growth in all its channels, led by the online segment, where sales were up 11.5% from a year ago.
The company guided full-year adjusted operating profit to be between £2.7 billion and £3.0 billion, compared to £3.13 billion a year earlier.
The retailer bought back £448 million worth of its own shares, and the balance of £1.45 billion will be completed by April 2026.
Europe Movers: Tesco PLC
Inga Muller
12 Jun, 2025
Frankfurt
Tesco PLC gained 1.3% to 390.20 pence after the grocery and general merchandise retailer released its first-quarter trading statement.
Sales in the quarter increased to £16.38 billion from £15.30 billion a year ago, as same-store sales climbed 4.6%.
The company launched over 350 new products, including the new Finest Regional Italian range and enhancements to the company’s Fire Pit barbecue range.
Tesco registered growth in all its channels, led by the online segment, where sales were up 11.5% from a year ago.
The company guided full-year adjusted operating profit to be between £2.7 billion and £3.0 billion, compared to £3.13 billion a year earlier.
The retailer bought back £448 million worth of its own shares, and the balance of £1.45 billion will be completed by April 2026.
Japan Indexes Halt Four-Day Rally, Business Sentiment Deteriorates
Akira Ito
12 Jun, 2025
Tokyo
Tokyo stocks halted a four-day advance amid renewed worry about the U.S. trade policy uncertainty.
The Nikkei 225 Stock Average fell 0.7%, and the broader Topix eased 0.2% as investors reviewed the latest update on business sentiment.
The Business Survey Index for large manufacturing companies in the second quarter weakened further to 4.8% from 2.4% in the first quarter, the Cabinet Office reported Thursday.
The sentiment deteriorated to the lowest level since the first quarter of 2024, amid renewed trade tensions and trade barriers introduced by the Trump administration.
The weakening confidence signals mounting challenges for Japan's economy, which relies heavily on exports to the U.S. and other international markets.
Despite the current slump in the sentiment, executives at large manufacturing companies are optimistic about the immediate future.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 0.7% to 38,173.09, and the broader Topix decreased 0.2% to 2,782.97.
Toyota Motor declined 1.6% to ¥2,616.50, Honda Motor decreased 1% to ¥1,400.50, and Nissan Motor eased 0.2% to ¥363.70.
Marubeni Corp. increased 0.4% to ¥2,880.0, Itochu Corp. fell 1.1% to ¥7,381.0, Mitsubishi Corp. decreased 0.7% to ¥2,857.0, and Mitsui & Company eased 0.1% to ¥2,940.0.
Japan Indexes Halt Four-Day Rally, Business Sentiment Deteriorates
Akira Ito
12 Jun, 2025
Tokyo
Tokyo stocks halted a four-day advance amid renewed worry about the U.S. trade policy uncertainty.
The Nikkei 225 Stock Average fell 0.7%, and the broader Topix eased 0.2% as investors reviewed the latest update on business sentiment.
The Business Survey Index for large manufacturing companies in the second quarter weakened further to 4.8% from 2.4% in the first quarter, the Cabinet Office reported Thursday.
The sentiment deteriorated to the lowest level since the first quarter of 2024, amid renewed trade tensions and trade barriers introduced by the Trump administration.
The weakening confidence signals mounting challenges for Japan's economy, which relies heavily on exports to the U.S. and other international markets.
Despite the current slump in the sentiment, executives at large manufacturing companies are optimistic about the immediate future.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 0.7% to 38,173.09, and the broader Topix decreased 0.2% to 2,782.97.
Toyota Motor declined 1.6% to ¥2,616.50, Honda Motor decreased 1% to ¥1,400.50, and Nissan Motor eased 0.2% to ¥363.70.
Marubeni Corp. increased 0.4% to ¥2,880.0, Itochu Corp. fell 1.1% to ¥7,381.0, Mitsubishi Corp. decreased 0.7% to ¥2,857.0, and Mitsui & Company eased 0.1% to ¥2,940.0.
China Indexes Face Headwinds After Threats of New Unilateral U.S. Tariffs
Li Chen
12 Jun, 2025
Hong Kong
China's stock market indexes traded down amid new threats of U.S. tariffs.
The Hang Seng index decreased 0.8%, and the mainland-focused CSI 300 index declined a fraction as investors looked for details about the recently announced U.S.-China trade framework.
Despite positive signaling by the Trump administration officials at the end of two-day talks in London, U.K., Chinese officials provided few concrete details about the way forward.
Market sentiment was weak after the U.S. president said he plans to announce unilateral tariffs on imports from key trading partners over the next two weeks.
Investor anxieties ran high after Donald Trump threatened new additional tariffs ahead of the July 9 deadline, as the Trump administration failed to secure new agreements.
After the introduction of sky-high tariffs in early April, the White House boasted that countries would soon line up and sign trade agreements and signaled well over one hundred deals over the next two months.
So far, not one trade deal has been signed, barring a preliminary "trade framework understanding" with the U.K.
China Indexes and Stocks
The Hang Seng index declined 0.8% to 24,182.87, and the CSI 300 index inched lower 0.01% to 3,894.28.
Vehicle markers declined for the second day in a row after a weaker-than-expected increase in automobile sales in May dampened sentiment.
BYD decreased 2.3% to HK ¥353.60, Li Auto fell 1.4% to HK $114.10, and Geely Automobile Holdings declined 1.5% to HK $16.98.
China Indexes Face Headwinds After Threats of New Unilateral U.S. Tariffs
Li Chen
12 Jun, 2025
Hong Kong
China's stock market indexes traded down amid new threats of U.S. tariffs.
The Hang Seng index decreased 0.8%, and the mainland-focused CSI 300 index declined a fraction as investors looked for details about the recently announced U.S.-China trade framework.
Despite positive signaling by the Trump administration officials at the end of two-day talks in London, U.K., Chinese officials provided few concrete details about the way forward.
Market sentiment was weak after the U.S. president said he plans to announce unilateral tariffs on imports from key trading partners over the next two weeks.
Investor anxieties ran high after Donald Trump threatened new additional tariffs ahead of the July 9 deadline, as the Trump administration failed to secure new agreements.
After the introduction of sky-high tariffs in early April, the White House boasted that countries would soon line up and sign trade agreements and signaled well over one hundred deals over the next two months.
So far, not one trade deal has been signed, barring a preliminary "trade framework understanding" with the U.K.
China Indexes and Stocks
The Hang Seng index declined 0.8% to 24,182.87, and the CSI 300 index inched lower 0.01% to 3,894.28.
Vehicle markers declined for the second day in a row after a weaker-than-expected increase in automobile sales in May dampened sentiment.
BYD decreased 2.3% to HK ¥353.60, Li Auto fell 1.4% to HK $114.10, and Geely Automobile Holdings declined 1.5% to HK $16.98.
U.S. Movers: Hooker Furnishing, Oracle, Oxford Industries
Scott Peters
12 Jun, 2025
New York City
Oracle Corp. surged 7.6% to $189.75 after the database management company reported results for the fiscal fourth quarter of 2025 ending on May 31.
Revenue increased to $15.90 billion from $14.29 billion, net income edged up to $3.43 billion from $3.14 billion, and diluted earnings per share rose to $1.19 from $1.11 a year ago.
Cloud revenue was up 27% to $6.7 billion, and cloud infrastructure sales were up 52% to $3.0 billion in the quarter.
For the full year, revenue jumped to $57.40 billion from $52.96 billion, net income climbed to $12.44 billion from $10.47 billion, and diluted earnings per share rose to $4.34 from $3.71 a year earlier.
Oxford Industries Inc. plunged 8.4% to $45.80 after the parent company of Tommy Bahama and Lily Pulitzer reported results for the fiscal first quarter of 2025 ending on May 3.
Net sales declined to $392.86 million from $398.18 million, net earnings slipped to $26.18 million from $38.37 million, and diluted earnings per share fell to $1.70 from $2.42 a year ago.
The company proposed a dividend of 69 cents per share, compared to 67 cents a year earlier, payable on August 1 to shareholders on record on July 18.
Oxford Industries revised its fiscal 2025 outlook to include $40 million in additional tariff costs, or $2.00 per share on an after-tax basis.
The company now estimates full-year net sales to be between $1.47 billion and $1.51 billion, compared to $1.52 billion; GAAP earnings per share between $2.28 and $2.68, compared to $5.87; and adjusted earnings per share between $2.80 and $3.20, compared to $6.68 in 2024, respectively.
Hooker Furnishings Corp. dropped 2.7% to $11.06 after the designer of home furnishings reported results for the first quarter of fiscal 2026 ending on May 4.
Net sales declined to $85.32 million from $93.57 million, net loss shrank to $3.05 million from a loss of $4.09 million, and diluted loss per share narrowed to 29 cents from a loss of 39 cents a year ago.
“We are executing a multi-phase cost reduction strategy aimed at achieving approximately $25 million in annualized savings by fiscal year 2027,” the company said in a release to investors.
The company has approved a quarterly cash dividend of 23 cents per share payable on June 30 to shareholders on record on June 16.
U.S. Movers: Oracle, Oxford Industries
Scott Peters
12 Jun, 2025
New York City
Oracle Corp. surged 7.6% to $189.75 after the database management company reported results for the fiscal fourth quarter of 2025 ending on May 31.
Revenue increased to $15.90 billion from $14.29 billion, net income edged up to $3.43 billion from $3.14 billion, and diluted earnings per share rose to $1.19 from $1.11 a year ago.
Cloud revenue was up 27% to $6.7 billion, and cloud infrastructure sales were up 52% to $3.0 billion in the quarter.
For the full year, revenue jumped to $57.40 billion from $52.96 billion, net income climbed to $12.44 billion from $10.47 billion, and diluted earnings per share rose to $4.34 from $3.71 a year earlier.
Oxford Industries Inc. plunged 8.4% to $45.80 after the parent company of Tommy Bahamas and Lily Pulitzer reported results for the fiscal first quarter of 2025 ending on May 3.
Net sales declined to $392.86 million from $398.18 million, net earnings slipped to $26.18 million from $38.37 million, and diluted earnings per share fell to $1.70 from $2.42 a year ago.
The company proposed a dividend of 69 cents per share, compared to 67 cents a year earlier, payable on August 1 to shareholders on record on July 18.
Oxford Industries revised its fiscal 2025 outlook to include $40 million in additional tariff costs, or $2.00 per share on an after-tax basis.
The company now estimates full-year net sales to be between $1.47 billion and $1.51 billion, compared to $1.52 billion; GAAP earnings per share between $2.28 and $2.68, compared to $5.87; and adjusted earnings per share between $2.80 and $3.20, compared to $6.68 in 2024, respectively.
U.S.-China Trade Framework Lacked Details, Consumer Price Inflation Accelerated In May
Barry Adams
11 Jun, 2025
New York City
Stock market indexes traded down after the U.S.-China trade announcements underwhelmed investors' expectations.
The S&P 500 index decreased 0.2%, the tech-heavy Nasdaq Composite declined 0.3%, and the bond yield edged higher.
At the end of two-day trade talks, the U.S. and China agreed to roll back high tariffs and resume exports of critical rare earth minerals from China, and the U.S. will permit Chinese students to continue with their college education.
Neither side provided the details of tariffs on imports and the critical data needed for the scope of import taxes.
“China reaffirmed that the two sides should move toward each other, honor their words with actions, and demonstrate good faith and concrete efforts in fulfilling their commitments, jointly safeguarding the hard-won outcomes of dialogue,” China-controlled CCTV quoted Vice Premier He Lifeng.
Despite the positive spin by the Chinese and the U.S. trade negotiators, the yield on 10-year U.S. Treasury notes is 4.48%.
Consumer price inflation edged up in May from April, according to the latest data released by the Bureau of Labor Statistics.
The CPI index edged up to an annual increase of 2.4% in May from a four-year low of 2.3% in April and accelerated for the first time in four months.
The core rate of inflation, which excludes volatile food and energy prices, held steady at 2.8%, the level last seen in 2021.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.1% to 6,043.14, the Nasdaq Composite edged up 0.1% to 19,729.98, and the Russell 2000 index advanced 0.3% to 2,162.85.
The yield on 2-year Treasury notes edged higher to 4.05%, 10-year Treasury notes decreased to 4.43%, and 30-year Treasury bonds advanced to 4.97%.
WTI crude oil increased $1.24 to $66.22 a barrel, and natural gas prices edged higher by $0.07 to $3.60 a thermal unit.
Gold increased by $15.38 to 3,343.42 an ounce, and silver edged down by $0.18 to $36.39.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.28 to 98.82 and traded at the lowest level since April 2022.
U.S. Movers
Dave & Buster's advanced 5.6% to $27.32, and the entertainment venue and restaurant operator reported better-than-expected quarterly results.
GitLab Inc. declined 12.8% to $42.30 despite the software platform for developers reporting better-than-expected fiscal first-quarter results.
However, the company's fiscal second quarter estimate range fell short of analysts' expectations.
GameStop Corporation declined 4.5% to $28.77 after the electronics retailer reported weaker-than-expected revenue in the latest quarter.